Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Summary: Charter Communications (CHTR) - CHTR currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] - CHTR shares have increased by 10.23% over the past week, outperforming the Zacks Cable Television industry, which rose by 3.9% during the same period [5] - Over the past quarter, CHTR shares have gained 13.57%, and over the last year, they have increased by 50.89%, while the S&P 500 has moved -7.43% and 12.15%, respectively [6] - The average 20-day trading volume for CHTR is 1,557,079 shares, indicating a bullish trend as the stock is rising with above-average volume [7] Earnings Outlook - In the past two months, 3 earnings estimates for CHTR have been revised upwards, while only 1 has been revised downwards, leading to an increase in the consensus estimate from $37.90 to $39.58 [9] - For the next fiscal year, 6 estimates have moved upwards with no downward revisions, indicating positive sentiment regarding future earnings [9] Conclusion - Considering the strong momentum indicators and positive earnings outlook, CHTR is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [11]

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Has Charter Communications (CHTR) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.Charter Communications is a member of our Consumer Discretionary group, which includes 256 different companies and currently sits at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average ...

Company Overview - Charter Communications is the second largest cable operator in the United States and a leading broadband communications company providing video, Internet, and voice services [12] - The company served approximately 30.1 million customers in 41 states through its Spectrum brand as of December 31, 2024 [12] Investment Ratings - Charter Communications has a Zacks Rank of 3 (Hold) with a VGM Score of A, indicating a solid overall rating [12] - The company also boasts a Value Style Score of A, attributed to attractive valuation metrics such as a forward P/E ratio of 10.15 [13] Earnings Estimates - Two analysts revised their earnings estimates upwards in the last 60 days for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.18 to $38.08 per share [13] - Charter Communications has an average earnings surprise of 5.1%, suggesting a history of exceeding earnings expectations [13] Investment Considerations - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Charter Communications is recommended for investors' consideration [13]

Core Points - Charter Communications has launched an Employee Stock Purchase Plan (ESPP) to encourage employee ownership and reward tenure [1][2] - The ESPP allows eligible employees to purchase Charter stock through payroll deductions, with a matching grant of Restricted Stock Units (RSUs) based on tenure [2][3] - The company offers competitive starting wages, comprehensive health benefits, a market-leading retirement plan, and tuition-free education programs [4] Employee Stock Purchase Plan (ESPP) - The ESPP enables eligible employees to contribute up to 15% of their pay, with a maximum of $5,000 per year, to purchase Charter stock [2] - Employees receive RSUs that fully vest after three years, incentivizing long-term career growth within the company [2][3] - Participants can adjust or withdraw contributions during each six-month purchase period, enhancing accessibility [3] Employee Benefits - Charter provides a starting wage of at least $20 per hour, nearly three times the federal minimum wage [4] - The company has absorbed the full annual cost increase of health benefits for the last 12 years [4] - Charter offers a retirement plan with a company contribution of up to 9% per year and covers 100% of tuition costs for full-time employees pursuing select degrees [4] Company Overview - Charter Communications is a leading broadband connectivity company and cable operator, serving over 57 million homes and businesses in 41 states [5] - The company operates under the Spectrum brand and provides a full range of residential and business services, including Spectrum Internet®, TV, Mobile, and Voice [5]

Core Viewpoint - Charter Communications Inc. is positioned as a strong competitor in the cable industry, demonstrating resilience through improved cash flow and subscriber retention strategies despite facing challenges from competitors and market conditions [1][5]. Financial Performance - Charter's revenue increased by 0.4%, exceeding estimates by $70 million, while EBITDA rose by 5% with a 180 basis points expansion in EBITDA margins to 42%, surpassing expectations by 80 basis points [2]. - The company reported a normalized loss of approximately 150,000 subscribers in fiscal 2024, with improvements noted in broadband and video subscriber losses compared to the first quarter of 2024 [5]. Subscriber Dynamics - Charter's broadband subscriber losses improved to 55,000 from 72,000 in the previous quarter, while video subscribers declined by 167,000 compared to a larger loss of 392,000 in the first quarter [5]. - The company is offering promotional pricing for broadband at $40 per month, while the average revenue per user (ARPU) for residential broadband subscribers is $130, compared to Comcast's $170 [4]. Market Strategy - Charter's video offerings now include OTT packages priced at $80 per month, and the company is focusing on upselling additional services despite industry-wide pricing pressures [3]. - The company has resumed stock repurchases following the Liberty Broadband acquisition vote, indicating confidence in its financial position [5]. Future Outlook - Horan projects that Charter will achieve a free cash flow per share increase of four times by 2030, with a projected free cash flow yield of approximately 27% [6][7]. - The company plans to maintain a capital expenditure of around $12 billion for fiscal 2025, decreasing to $8 billion by 2028 [6].

Core Insights - Charter Communications, Inc. (CHTR) experienced a significant Power Inflow, indicating a potential uptrend in its stock price, which gained 3.6% during the session [3][4][9] Trading Signals - The Power Inflow occurred at $361.02, serving as a crucial trading signal for investors looking to identify institutional movements and smart money trends [4][6] - This indicator is interpreted as a bullish signal by active traders, suggesting a favorable entry point for those looking to capitalize on expected upward movement [4][5] Market Analysis - Order flow analytics, which analyze the volume and characteristics of buy and sell orders, are essential for understanding market conditions and making informed trading decisions [5][7] - The Power Inflow typically occurs within the first two hours of market opening and can help gauge the stock's overall direction for the remainder of the trading day [6] Performance Metrics - Following the Power Inflow, the stock reached a high price of $373.92 and closed at $373.65, reflecting returns of 3.6% and 3.5% respectively [9]

Financial Data and Key Metrics Changes - Revenue was relatively flat year over year, while EBITDA growth accelerated to 4.8%, driven by strong mobile growth and improved service quality [6][40] - Adjusted EBITDA for the first quarter was $1.2 billion, compared to $1.1 billion last year, reflecting higher adjusted EBITDA and lower interest expense [40][46] - First quarter free cash flow totaled $1.6 billion, an increase of approximately $1.2 billion compared to last year's first quarter [44] Business Line Data and Key Metrics Changes - Internet customer results showed a decline of 60,000 customers in the first quarter, while mobile lines increased by 514,000 [28] - Video customers declined by 181,000, an improvement compared to a loss of 405,000 in the same quarter last year [29] - Total commercial revenue grew by 1.4% year over year, with mid-market and large business revenue growth of 3.9% [34] Market Data and Key Metrics Changes - Monthly data usage by non-video Internet customers grew to approximately 825 gigabytes per month, with over 30% of those customers using over one terabyte of data [8] - The company ended the quarter with 902,000 subsidized rural pass lines, growing those passings by 89,000 in the first quarter [31] - Advertising revenue declined by 12.9% primarily due to less political revenue, with total consolidated first quarter revenue up 0.4% year over year [35][36] Company Strategy and Development Direction - The company continues to focus on delivering the best networks and products at the best value for residential and business customers, combined with unmatched service [11][23] - The launch of the "Life Unlimited" brand aims to enhance customer commitment and reliability, with a focus on seamless connectivity and entertainment [21][77] - The company is investing in machine learning and AI to improve customer service and operational efficiency [18][20] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains competitive, but the impact of the Affordable Connectivity Program (ACP) elimination is behind them [6] - The company expects to see improvements in customer retention and satisfaction due to the new pricing and packaging strategies [119][125] - Management expressed confidence in returning to positive broadband subscriber growth despite current market conditions [126] Other Important Information - The company added two Liberty-nominated members to its board of directors, while two others rolled off [24] - The first quarter included effects from the Los Angeles wildfires, with approximately 9,000 disconnects related to the fire [25][26] - Capital expenditures totaled $2.4 billion in the first quarter, down about $400 million from last year's first quarter [41] Q&A Session Summary Question: Differences in converged households and impact on broadband numbers - Management noted that customers with mobile lines tend to have lower churn rates, and the value convergence is driving customer satisfaction and retention [55][59] Question: Update on Seamless Entertainment rollout - The rollout of direct-to-consumer apps is nearly complete, with a digital storefront expected to launch later this year [70][74] Question: Impact of promotions and promotional roll-off - Management highlighted the importance of having the best product and creating value for customers to minimize promotional roll-offs [98][100] Question: Consumer behavior and mobile substitution - Management indicated that while mobile substitution is occurring, their sales are up and churn remains stable [133][134] Question: Fiber competition and broadband penetration - Management stated that fiber overbuilders have historically impacted their market share, but the current dynamics are more influenced by mobile substitution [150][151]

Core Viewpoint - Charter Communications reported mixed earnings for Q1 2025, with earnings per share of $8.42, missing estimates by 1.29% but showing an 11.5% year-over-year increase. Revenues reached $13.74 billion, a 0.4% increase year-over-year, driven by growth in residential mobile service and Internet, but offset by declines in video and advertising revenues [1][2]. Financial Performance - Earnings per share for Q1 2025 was $8.42, missing the Zacks Consensus Estimate by 1.29% but increasing 11.5% year-over-year [1]. - Total revenues were $13.74 billion, up 0.4% year-over-year, beating the consensus mark by 0.41% [1]. - Adjusted EBITDA increased 4.8% year-over-year to $5.76 billion [11]. Revenue Breakdown - Residential revenues totaled $10.79 billion, a slight decrease of 0.1% year-over-year [2]. - Internet revenues grew 1.8% year-over-year to $5.93 billion [3]. - Video revenues decreased 8.4% year-over-year to $3.58 billion [3]. - Voice revenues fell 5% year-over-year to $356 million [3]. - Mobile service revenues surged 33.5% year-over-year to $914 million [3]. - Commercial revenues increased 1.4% year-over-year to $1.82 billion [3]. - Other revenues rose 13.4% year-over-year to $793 million, mainly due to higher mobile device sales [5]. Subscriber Statistics - Total residential and SMB Internet customers decreased 2% year-over-year to 31.369 million [6]. - Total Internet customers decreased by 60 thousand, totaling 30.0 million as of March 31, 2025 [6]. - Total video customers decreased by 181 thousand, totaling 12.71 million [6]. - Total wireline voice customers decreased by 278 thousand, totaling 6.6 million [7]. - Charter added 514 thousand mobile lines, totaling 10.4 million mobile lines as of March 31, 2025 [7]. Operating Costs - Total operating costs and expenses decreased 2.6% year-over-year to $7.97 billion [9]. - Programming costs decreased 10.4% year-over-year due to fewer video customers and a higher mix of lower-cost packages [9]. - Marketing and residential sales expenses increased 7.7% year-over-year due to growth initiatives [10]. Cash Flow and Capital Expenditure - Net cash flows from operating activities totaled $4.2 billion in Q1 2025 [12]. - Capital expenditure was $2.4 billion, a decrease of $392 million from the previous year [12]. - Free cash flow totaled $1.6 billion, reflecting an increase of $1.2 billion year-over-year [13].

Financial Data and Key Metrics Changes - Revenue was relatively flat year over year, while EBITDA growth accelerated to 4.8%, driven by strong mobile growth and improved service quality [6][40] - Adjusted EBITDA grew by 4.8% year over year, with net income attributable to shareholders at $1.2 billion, compared to $1.1 billion last year [40][46] - First quarter free cash flow totaled $1.6 billion, an increase of approximately $1.2 billion compared to last year's first quarter [44] Business Line Data and Key Metrics Changes - The company added over 500,000 Spectrum Mobile lines, with a total of over 2.1 million lines added over the last year, resulting in line growth of over 25% [5] - Internet customer results showed a decline of 60,000 customers in the first quarter, while video customers declined by 181,000, an improvement from a loss of 405,000 in the same quarter last year [28][29] - Mobile revenue growth was driven by a 3.9% increase in mid-market and large business revenue, while small business revenue declined by 0.2% [34] Market Data and Key Metrics Changes - Monthly data usage by non-video Internet customers grew to approximately 825 gigabytes per month, with over 30% of those customers using over one terabyte of data [8] - The company ended the quarter with 902,000 subsidized rural pass lines, growing those passings by 89,000 in the first quarter [31] - Advertising revenue declined by 12.9% primarily due to less political revenue, with total consolidated first quarter revenue up 0.4% year over year [35][36] Company Strategy and Development Direction - The company continues to focus on delivering the best networks and products at the best value, with a unique set of assets and significant scale [11][12] - The launch of the "Life Unlimited" brand and new customer commitment aims to enhance reliability and service quality, driving higher customer satisfaction [21][24] - The company is investing in machine learning and AI to improve service efficiency and customer experience [18][20] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains competitive, but the impact of the Affordable Connectivity Program (ACP) elimination is behind them [6] - The company expects to gradually increase leverage to the middle of the four to four and a half times range pro forma for the Liberty transaction over the next several quarters [49] - Management expressed confidence in returning to positive broadband subscriber growth despite current market conditions [126] Other Important Information - The company incurred approximately 9,000 disconnects related to the Los Angeles wildfires, but first quarter adjusted EBITDA was not significantly impacted [25][26] - Capital expenditures totaled $2.4 billion in the first quarter, down about $400 million from last year's first quarter [41] - The company added two Liberty-nominated members to its board of directors [24] Q&A Session Summary Question: Differences in converged households and impact on broadband numbers - Management noted that there is a substantial difference in Internet churn rates for customers who also take mobile lines, with significant benefits observed [55][56] Question: Impact of tariffs on capital spending - Management does not expect tariffs to have a meaningful impact on capital expenditures, reiterating guidance for the year at $12 billion [63] Question: Update on Seamless Entertainment rollout - Management provided an update on the rollout of direct-to-consumer apps and the digital storefront, with significant progress made [70][74] Question: Consumer behavior and mobile substitution - Management indicated that sales are up and churn is stable, despite some mobile substitution trends [133] Question: Fiber competition and broadband penetration - Management stated that fiber overbuilders have historically impacted penetration rates, but the current market dynamics are more influenced by mobile substitution [150]

Core Viewpoint - Charter Communications' CEO Chris Winfrey presents a positive perspective on tariffs, contrasting with other CEOs who express concerns about their impact on business forecasts and consumer behavior [1][3]. Company Overview - Charter Communications serves over 57 million U.S. families and businesses, with a 100% U.S.-based workforce, emphasizing a preference for American-made products when competitively priced [2]. Financial Outlook - CFO Jessica Fischer states that tariffs are not expected to significantly impact Charter's capital expenditures, maintaining a guidance of $12 billion in spending despite anticipated tariff effects [3]. - Charter reported total revenue of $13.74 billion, exceeding expectations, although earnings per share were $8.42, below the consensus estimate of $8.69 [5][6]. Customer Trends - The company lost 60,000 internet customers and 181,000 video customers in the first quarter, an improvement from a loss of 405,000 video customers in the same quarter the previous year [5]. - The integration of streaming services like Max, Disney+, and Peacock into Spectrum plans is seen as beneficial, with a net value to customers estimated at over $80 per month [5]. Industry Context - Other media companies, including Comcast and Netflix, report minimal concerns regarding tariffs, indicating resilience in their business operations [3][7]. - The upcoming earnings reports from tech companies, particularly Apple, are highly anticipated as they may provide further insights into the impact of trade tensions with China [7].